Paramount has launched a bid to acquire Warner Bros after losing a high stakes bidding war with Netflix in which Warner Bros. agreed to sell their company for $83 billion in one of the largest mergers in Hollywood history. 

The bid would see Paramount pay $30 per share, totaling over $108 billion for the entirety of the Warner Bros. Discovery, which encompasses networks such as Discovery and CNN. This contrasts Netflix’s original deal, which only saw it acquire Warner Bros. Discovery’s film and streaming services such as HBO max for $83 billion. Netflix’s offer was already striking, as it offered $83 billion for two services of a company whose stock value was only $60 billion. Following Paramount’s announcement, Paramount’s shares climbed 6% with Netflix’s shares dropping 4%. 

Paramount’s push to acquire Warner Bros. signals a broader issue within streaming services, with there being a larger push to consolidate streaming platforms, sparking backlash amongst many as they claim that it violates federal antitrust laws. Paramount acquiring Warner Bros. would make it one of the largest entertainment companies in the world, with it already controlling CBS, Paramount+, Paramount Pictures, MTV, and Nickelodeon. This has sparked interest from the Federal Trade Commission (FTC), which is concerned that the merger between the two companies could substantially lessen competition within the market.

Overall, the potential merger will be historic for the entertainment industry, both for the financial and regulatory challenges it is expected to face.